Can I pay monthly for farm solar?

Ways to pay for farm solar

There are three common routes, and you can choose what suits your cash flow. Paying outright keeps things simple and suits farms with capital set aside for equipment. Finance spreads the cost over an agreed term, which can make sense when you would rather keep working capital available for stock, feed or machinery. A mix of the two, with a deposit and the balance on finance, is also common and reduces both the regular payment and the amount borrowed.

Whichever route you choose, the system, the warranty and the quote stay the same. Finance is simply a payment method, not a different product. We set out the options alongside your fixed quote, with no obligation to use them. For a deeper look at the finance options and tax treatment, read our farm solar finance guide.

How the deposit and balance option works

Many farms prefer to put down a deposit and finance the rest. A larger deposit means smaller regular payments and less borrowed overall, while a smaller deposit keeps more cash on hand. We show you the effect of different deposit amounts alongside your quote so you can pick the combination that works for your business. The terms, including the repayment period and any conditions, are set out in writing before you commit.

Capital allowances and tax relief

Solar panels, inverters and batteries on farm and business buildings may qualify as plant and machinery. That can make them eligible for capital allowances, including the Annual Investment Allowance, which lets a business deduct qualifying spending from taxable profits in the year of purchase. The value of any relief depends entirely on your circumstances.

• Relief depends on your profits, tax rate and whether you trade as a sole trader, partnership or company.
• The timing of your purchase relative to your accounting year can matter.
• Always confirm with your accountant before relying on any tax treatment.

Finance and tax relief are separate things. You can use finance to spread the cost and still discuss capital allowances with your accountant for the equipment. The two work alongside each other. If you are unsure which route to take, the simplest approach is to look at the outright quote first, then compare it with the monthly figures to see how the repayments fit your cash flow through the year.

What does not change with finance

Some farms worry that taking finance means a different install or a lesser system. It does not. The panels, the inverter, the battery if included, the roof work, the system sizing and the grid application are all the same. We install through MCS-certified partners in every case, and your warranties and documentation are identical. The only difference is how and when you pay.

Getting started

The first step is your latest electricity bill. From that we model system size and expected generation, survey your site, and send a fixed, itemised quote with the finance options alongside it. You then choose whether to pay outright, use finance, or combine a deposit with finance. There is no pressure and no obligation.

For more answers, visit Scottish Energy Efficiency for a wider set of energy questions.

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